Inside Toronto’s fintech revolution
Fuelled by international investors, global talent and cutting-edge startups
In just a few years, Toronto has transformed into one of the fastest-growing financial technology hubs in the world, according to a recent report from Toronto Finance International, researched and written by Accenture and McMillan LLP. Based on its findings, equity financing deals among Toronto region financial technology startups nearly tripled between 2014 and 2017, and today, the region boasts one of the highest growth rates in the world. Fuelled by early investment in artificial intelligence (AI), funding from all three levels of government (federal, provincial and municipal), a variety of innovation centres at universities, incubators and accelerators across the region and a federal fast-track visa program, the city is booming right now. This momentum is drawing the eyes of the world’s finance community to Toronto. Earlier this year, Funding Circle, a global SME loans platform that has lent over $10 billion (CAD) to more than 60,000 businesses globally, announced plans to open its first Canadian office in Toronto, according to a recent announcement by the organization. This follows the recent move of Silicon Valley Bank, a UB-based lender focused on tech startups and venture capital firms, which opened its first Canadian office in Toronto. The fast-developing ecosystem of the region is also attracting global accelerators. In 2017, US seed accelerator Techstars became the first international accelerator to open a Toronto office, signaling the growing global perception of Toronto’s market maturity, according to the report. “Close to 45 per cent of the venture-capital investment we saw in Canada last year came from U.S. investors,” says Jennifer Reynolds. “They’re seeing the opportunity here, and they’re starting to understand what Toronto has to offer.” Reynolds is President & CEO of Toronto Finance International (TFI), a public-private partnership between the government, the financial-services sector and academia whose mission is to promote the Canadian financial sector on the global stage and Toronto’s prominence as a leading financial centre.